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Arbitrum Struggles at $0.72: Will ARB Rebound or Drop Further?
Arbitrum (ARB) is experiencing a tumultuous time as it trades around the crucial level of $0.72. The cryptocurrency’s persistent bearish momentum is being fueled by technical and on-chain data, indicating further challenges ahead.
Recent Price Action
ARB has been unable to stabilize above the key demand zone, which has led to a significant decline in value over the past 24 hours. This downtrend has resulted in a 5.54% loss, leaving investors concerned about its potential to rebound or continue falling.
Technical Indicators Confirm Bearish Outlook
The Relative Strength Index (RSI) is hovering at 37.13, indicating an oversold condition and intensifying selling pressure. Furthermore, the Moving Average (MA) crossover highlights a bearish trend, with the 9-day MA situated at $0.7682 and the 21-day MA at $0.8505. This development suggests that ARB’s downward trajectory may persist unless a sudden increase in buying volume occurs.
On-Chain Metrics Reflect Weak Engagement
ARB’s on-chain metrics have also reinforced the bearish outlook, showcasing reduced activity and diminished investor interest. Net Network Growth has dropped by 0.98%, signaling slower adoption within the ecosystem. The “In the Money” metric has decreased by 0.22%, while Concentration declined by 0.13%. Additionally, Large Transactions observed a substantial decrease of 14.73%, further emphasizing the reduced institutional involvement.
Market Sentiment Reflects Trader Hesitation
The overall market sentiment is also bearish, as open interest has plummeted by 2.90% to $163.69 million. This decline highlights reduced trader participation and limited new positions being opened, suggesting a lack of conviction in ARB at its current price levels.
Conclusion: Downside More Likely
Based on the technical and on-chain data, it appears more likely that ARB will experience further downside in the near term. The combination of bearish technical signals, declining user engagement, and unfavorable market sentiment creates an environment where recovery is unlikely without significant positive developments. In its current state, the bearish trend appears poised to continue.
Source: AMBCrypto
Source: ambcrypto.com
